Supermarket price war is heating up!
Good news bargain hunters! The price war between the supermarkets is getting really intense, which means that grocery costs are dropping at a record rate/faster than a flasher's trousers. Have you noticed?
According to the latest figures from Kantar Worldpanel, annual prices fell to a new low of -1.6% for the 12 weeks to 1st March. This new low has been down to a "combination of lower general inflation and the grocery price war" which means that "shoppers had saved a combined £400m over the 12 weeks."
Inflation has dipped too, thanks to the drop in oil prices. And of course, with Aldi and Lidl frightening the bejesus out of the big guns, they're also duking it out on price, which means we all benefit.
That said, the supermarkets themselves won't quite know what to think about it all. While Tesco had a small improvement in sales (up 1.1%), Sainsbury's, Asda and Morrisons saw sales fall by 2.1%, 0.5% and 0.4% respectively.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "All of the major supermarkets are cutting prices to win shoppers, especially within everyday staples such as eggs, vegetables and milk. Retailers are focusing their efforts on simple price cuts rather than complicated ‘multibuy’ deals."
"Among the big four supermarkets Tesco has been the standout retailer ...increasing sales have helped Tesco arrest its falling market share, which is down just 0.1 percentage point compared with last year. This resurgence has impacted Asda which competes for many of the same shoppers as Tesco."
"Asda’s sales are down by 2.1%, taking its market share to 17.0%. Morrisons and Sainsbury’s both grew behind the market average with sales falling by 0.4% and 0.5% respectively."